Description
Understand the federal tax laws when providing prizes, bonuses, and other benefits.
While competitive salaries often attract top employees to join an employer, employers often provide competitive and attractive prizes, bonuses, awards, and other benefits to boost their employees morale and reward employees for going the extra mile. However, employers must be aware of federal tax laws when providing these benefits, or they may find these benefits more expensive than originally thought. This topic will help you learn different ways employees may be rewarded for exceptional performance without incurring additional tax expenses or at least avoiding penalties. Review reporting and withholding requirements that ensure employers fully comply with federal tax obligations. This topic will also keep you abreast of important changes in this area under the Tax Cuts and Jobs Act and update you on the latest regulations.
Date: 2022-12-15 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to identify the tax implications of fringe benefits for both employers and employees.
* You will be able to review how to determine your fringe benefit policies.
* You will be able to describe ways employees can be rewarded for performance.
* You will be able to identify important changes in this area under the Tax Cuts and Jobs Act.
Cash and Non-Cash Benefits for Employees Generally Cant Be Treated as Gifts
• Definition of Income Under Section 61; Section 83
• Section 102 – No Income Exclusion for Gifts to Employees
Transportation Benefits
• Employer-Provided Vehicles
• Transportation Fringe Benefits
• Parking Expenses
• No Deduction or Exclusion for Moving Expenses Under Tax Cuts and Jobs Act
Entertainment, Meals, and Lodging
• What Is Entertainment?
• Meals
• Meals Provided for the Employers Convenience
• Lodging Provided for Employers Convenience
Educational Benefits
• Educational Assistance Plans
• Working Condition Fringe Benefits for Job-Related Expenses
• Qualified Scholarships
• Qualified Tuition Reduction
• Seminars and Other Training Involving Travel
Recognized Fringe Benefits Under IRC Section 132
• De Minimis Fringe Benefits
• Working Condition Fringe Benefits
• Cell Phones and Other Mixed Use Technology Items
• Holiday Parties
Prizes and Awards
• Employee Achievement Awards
• Prizes and Awards Transferred to Charities
• Qualified Employee Discounts
• Holiday Gifts
Withholding, Reporting, and Deduction Issues
• Reportable Items on Form W-2
• Withholding Rules Applicable to Supplemental Wages
• Withholding on Non-Cash Benefits
• Limitations on Deductions for Certain Benefits to Employees
CPP/FPC (Pending) ,HR Certification Institute ,CPE ,SHRM ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Luke D. Bailey-Clark Hill PLC
